Hajra Naz
BEIJING: Alibaba announced on Monday that it will invest 3 billion yuan ($431 million) to attract users to its Qwen AI app during the Lunar New Year holiday, intensifying the rivalry among China’s tech giants.
The campaign, which triples the spending of rivals Tencent and Baidu, begins on February 6. Alibaba plans to offer incentives for dining, drinks, entertainment, and leisure, including “large red envelopes distributed continuously,” according to the company’s statement.
Competitors Step Up Their AI Promotions
Late last month, Tencent and Baidu announced similar promotional plans, committing 1 billion yuan and 500 million yuan, respectively, for their AI chatbots.
Chinese tech firms have traditionally leveraged the Lunar New Year, when millions travel and spend time with family, as a marketing battleground to acquire new users.
One notable example occurred in 2015, when Tencent used WeChat to distribute digital red envelopes, boosting WeChat Pay against Alipay, which dominated the mobile payments market at the time.
This year, the holiday runs from February 15 for nine days, longer than in most previous years.
Intensifying Competition in China’s AI Market
Competition has accelerated since DeepSeek launched its R1 model in January last year, which shook global AI markets and prompted both faster adoption and fiercer rivalry among domestic companies.
Tencent’s promotion focuses on its Yuanbao chatbot and begins on Sunday. Users must upgrade the app to claim digital red envelopes, which can be withdrawn to WeChat wallets, or share links with rewards that others can claim.
Alibaba has not clarified whether its incentives will be cash red envelopes or discount coupons redeemable on platforms such as Taobao.
Other Chinese AI Firms Join the Race
Several other Chinese AI companies are also rolling out upgrades ahead of the holiday. DeepSeek is expected to launch its next-generation V4 model in mid-February, featuring advanced coding capabilities, according to The Information.
The escalating promotions highlight the intense competition in China’s AI sector, with firms using the festive period to capture user attention and expand their platforms.
